The SC recorded its largest net operating deficit in at least a decade in 2023, amid weak market activity as expenses rose while other income, such as from penalties, was sharply lower from a year earlier.
KUALA LUMPUR (March 25): The Securities Commission (SC) recorded its largest net operating deficit in at least a decade in 2023, amid weak market activity as expenses rose while other income, such as from penalties, was sharply lower from a year earlier.
Net operating deficit widened to RM56.46 million in 2023 from RM11.65 million in 2022, according to the SC Annual Report 2023 released on Monday. Once taxes are accounted for, the regulator’s deficit ballooned to RM71.3 million from RM25.3 million.
The self-funded statutory body’s revenue — mainly derived from levies, fees and charges — slipped 7.2% to RM209.91 million. Other income, which also includes recovery of investigation and proceeding costs, declined 84% to RM5.89 million in 2023.
“The SC’s investigation efforts remain focused on cases related to offences involving unlicensed activities, securities fraud and disclosure breaches,” which accounted for more than 50% of the investigations started in 2023, it added.
Total value of civil penalties imposed by the court was markedly lower in 2023 at RM4.81 million, from three actions involving 15 defendants. The SC recorded a disgorgement of RM13.83 million, while restitution totalled RM301,208 in 2023.
Staff costs, traditionally SC’s biggest expenditure, rose nearly 10% to RM209,65 million, followed by administrative expenses, which was 22% higher at RM41.88 million.